Books

Joint Post: David Evans and Jo Nova Robert Wenzel says to Federal Reserve: “Leave the Building to the Four-Legged Rats”

Finally a speech with attitude tells it like it is, at the US Federal Reserve. The speech was given by blogger Robert Wenzel in late April to the New York Federal Reserve Bank, because they invited him to speak. It deserves a read — a man who knows the details tallies up the score, and politely lays out the contradictions of the Federal Reserve at point blank range.

But it is much more than that. For the US Federal Reserve to invite Wenzel to explain Austrian economics to them is like “the team” in Australia inviting me along for lunch at the Department of Climate Change to explain why the CO2 theory ain’t too hot. If that happened (as if), what would I say? This is the nature of the choice that Wenzel faced. A slam-dunk, in the nicest possible way.

The convergence of common sense: Austrians are the skeptics of economics

Wenzel is an Austrian economist, which is like being a climate skeptic in climate change. In the 1930s, Keynesian economics took over from classical economics among the central [...]

Check these out. There’s been an ongoing war of ideas, Hayek vs Keynes, for eight decades and counting — and these videos sum it up consummately. This ongoing academic fight has shaped lives and countries for decades: booms, busts, unemployment, and possibly even wars.

Indeed it’s an ominous sign of the times that there is a resurgence of this debate. (The masses take no interest in monetary policy when times are booming.)

(If you are in a tearing hurry, skip the first minute).

I’m not a rap fan, but this is so good that, for the first time, I have to admit rap has its role.

There’s a second in the series and it’s even better.

…

* * *

There are parallels between climate and economics. Using global markets against “man made global warming” is a Keynesian solution to the weather.

The big left-right divide is not about conservative versus progressive. The “progressives” want us slow down, and give up cars, flights and air conditioners, and the “conservatives” fight to keep development rolling. Ultimately the left right dichotomy boils down to the individual versus the collective. Thus Keynes (the big government solution) [...]